August 4, 2016
Spirit AeroSystems 2nd quarter revenues up
Spirit AeroSystems reported second quarter 2016 financial results driven by strong operating performance of mature programs. Spirit’s second quarter 2016 revenue was US$1.8bn, up 8% compared to the same period of 2015, primarily driven by higher production deliveries on the A350 XWB and A320 programs, one-time claim settlements, and higher Global Customer Support and Services activity. During the quarter, Spirit concluded long-standing negotiations with Airbus and reached a comprehensive agreement on the A350 XWB program. As a result of the agreement, Spirit extended the block to 800 shipsets and recorded an additional net forward-loss of US$135.7m in the second quarter. Operating income for the second quarter of 2016 was US$83m compared to US$230m in the second quarter of 2015, reflecting the impact of the charge associated with the Airbus settlement and other one-time items (former CEO retirement costs and debt refinancing charges). Spirit’s backlog at the end of the second quarter of 2016 was approximately US$47bn, with work packages on all platforms in the Boeing and Airbus backlog of approximately 12,500 aircraft.